MSc Management: Business Report on TESCO's Challenges and Stakeholders

This business report examines the challenges faced by TESCO, a leading UK supermarket, including the pandemic, emerging market trends, rising raw material costs, and intense competition. It identifies the impact of these challenges on TESCO's operations and profitability. The report also includes a stakeholder analysis, outlining the interests and impact on internal stakeholders like management and workers, and external stakeholders such as suppliers, customers, and the government. Recommendations are provided for TESCO to mitigate these challenges through strategic planning, such as adapting to market trends, maintaining social distancing, and developing competitive advantages. The study highlights the importance of strategic actions in overcoming challenges and maintaining a competitive edge in the retail industry.

BUSINESS REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Determining challenges or issues that TESCO is facing.............................................................3
Purpose of study..........................................................................................................................4
Stakeholder analysis....................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business report refer to official document that encompass statistical data, important
factual information, and strategic tactics & their implementation information in the context of
venture objectives achievement. The current study will be based on TESCO, which falls under
the category of leading supermarkets in the UK that sells quality products and offer useful
services to local people according to their needs. The assignment will define pandemic, emerging
market trends, rising cost of raw material and competitive rivalry as current issues that firm face.
Lastly, the report will define stakeholder analysis that determine the impact of report upon
stakeholders.
TASK
Determining challenges or issues that TESCO is facing
TESCO is the world’s famous and leading British multinational retail brand in the United
Kingdom. There are several factors accessible in business world, which may put impact on firm
in negative way and due to these, organization may face challenges that affect its current affairs.
Here, the main three issues mention below that supermarket has been facing and these are;
Pandemic-
It is one of those current problems that TESC may face just like other brands or whole
world because it emerges environmentally. It connects to recent affairs of the company in term of
affecting current activities of its venture. For example, due to this factor, it may enable to open
its outlet in any nation, just because government ordered to shut each physical stores where
people gathered in bulk as they take this action to prevent individual person from spread of
infection (Akram and et.al., 2021).
Emerging market trend-
It is another issue that recently firm may face and deal to overcome in effective and short
term duration, because it may lead to decrease sales and productivity of brand. Supermarket face
this problem, due to fluctuation in needs and buying habits of each customer as they their
decision making process affected from pandemic, which drive their attention towards purchasing
vegan food items and many more that are healthy and enable them to be so (Kuchler and et.al.,
2020). This kind of change as social factor put direct impact on inventory, operation, marketing
and finance functions of supermarket.
Intense competition-

TESCO operate and manage its business functions within one those industries where
successfully brands already exist and take initiative to be competitive in their sector, which
increase extent of competitiveness and just because of this firm may face challenge (Hirsch,
Lanter and Finger, 2021). This issue connects to its current affairs in term of putting pressure on
management to make change within existing plans and tactics, through which they may gain
competitive edge and hold top positing in retail industry that is quite beneficial and essential for
chosen supermarket.
Rising raw material costs-
In category of current issues, it also included that firm has been facing as it collects raw
material to manufacture and sell quality products to consumers according to needs and
requirements as well as trend which they follow relate to cloth, food, etc. Rising cost in the
context of raw materials may threat, supermarket productivity and profitability. Furthermore, it
may case that to expand organizational supplier network, to obtain better raw material. It can be
said that overall process is time consuming and require more effort, which is not possible to do
so in short term duration.
Purpose of study
The existing report is based on TESCO, which operates and run under retail industry from
longer time. Here, the current four issues have been determined and evaluated, in order to
identify extent what each problem put impact on existing practices of firm and how to connect to
its current affairs in term of functions.
Each problem would benefit organization in term of awaking management regarding
challenges that impact venture profitability and productivity as well as performance level in
negative way. After getting awareness about everything, it would help firm to take better
decision in term of strategic strategy formation that help to prevent business from harmful and
complex factors or situations.
In the context of pandemic, it recommends to TESCO to develop effective plan by taking
governmental guidelines into consideration. For example, it would create list of employee’s duty
according to that each worker play their role weekly as per new working schedule, which help to
maintain social distancing.
Furthermore, company can hire skilled workers who are able to conduct market research
and gather important information about current market trends by using advance technologies,

such as social media, etc. It also enables them to be competitive in market by selling products
that people prefer to buy.
Stakeholder analysis
Internal stakeholders-
Management, workers, leaders, managers and high authority are the key internal
stakeholders who seek grow venture and obtain competitive advantages for it.
External stakeholders-
Suppliers, customers, government and investors are included in category of external
stakeholder, who tend to connect and work with those companies like TESCO that had great
market reputation.
This study is connecting to varied units of external and internal stakeholders, because
they all are connected with firm and take pleasure of organizational benefits in varied terms.
The current project would benefit each stakeholder in term of determining challenges that
would put negative impact on brand in the future and driving their attention towards strategic
formation that help to deal with complex and competitive environment. For example, by taking
each factor into consideration high authority and staff may collaborate with each other and take
initiative to develop successful plan which they use to deal with current issues.
It would impact positively upon suppliers as they get change to connect with famous firm
in retail industry and also benefit customers in term of obtaining quality items and services from
similar brand.
CONCLUSION
From above analysis it has been concluded that by taking effective and strategic actions
into considerations, organization has overcome current challenges in effective manner. It has
handled complicated situations appropriately and successfully. By summing up above discussion,
it has been summarized that by considering current market trends and making changes within
existing operational activities, organization has overcome negative impact of intense competition
within retail industry.

REFERENCES
Books and journals
Akram, U. and et.al., 2021. Impact of Digitalization on Customers’ Well-Being in the Pandemic
Period: Challenges and Opportunities for the Retail Industry. International Journal of
Environmental Research and Public Health. 18(14). p.7533.
Hirsch, S., Lanter, D. and Finger, R., 2021. Profitability and profit persistence in EU food
retailing: Differences between top competitors and fringe firms. Agribusiness. 37(2).
pp.235-263.
Kuchler, F. and et.al., 2020. Evidence from retail food markets that consumers are confused by
natural and organic food labels. Journal of Consumer Policy. 43(2). pp.379-395.